Generally accepted accounting principles are the "ground rules" used in the preparation of:
A)Income tax returns.
B)All accounting reports.
C)Reports to federal and state regulatory agencies.
D)Financial statements.

Question

Quizplus · Accepted Answer

Generally accepted accounting principles, or GAAP, are the standard accounting rules and procedures that companies must follow when preparing financial statements. These principles ensure consistency, comparability, and transparency in financial reporting, which is essential for investors, creditors, and other stakeholders to make informed decisions. Therefore, GAAP is primarily used in the preparation of financial statements.

Generally Accepted Accounting Principles Are the "Ground Rules" Used in the Preparation